In the current economic climate, created in large part by the Covid-19 virus, many borrowers are facing economic, logistical and institutional challenges and approaching their lenders with loan modification requests. Therefore, in handling the large number of such requests, it is important for lenders and servicers to remember to exercise caution in their communications with these borrowers in order to avoid potential liability for negligence and/or negligent misrepresentation.

‘Weimer’

A recent California case, although arising in the residential context, serves as a reminder to all lenders and servicers. In Weimer v. Nationstar Mortg., 2020 WL 1610159 (Cal. Ct. App. Apr. 2, 2020), the California Court of Appeals recently held servicers liable for negligence and negligent misrepresentation as a result of their mishandling of a borrower’s loan modification applications and communications made in connection therewith.

This content has been archived. It is available through our partners, LexisNexis® and Bloomberg Law.

To view this content, please continue to their sites.

Not a Lexis Subscriber?
Subscribe Now

Not a Bloomberg Law Subscriber?
Subscribe Now

Why am I seeing this?

LexisNexis® and Bloomberg Law are third party online distributors of the broad collection of current and archived versions of ALM's legal news publications. LexisNexis® and Bloomberg Law customers are able to access and use ALM's content, including content from the National Law Journal, The American Lawyer, Legaltech News, The New York Law Journal, and Corporate Counsel, as well as other sources of legal information.

For questions call 1-877-256-2472 or contact us at [email protected]